North Carolina Down Payment Support Systems

Payments Gateway - These programs would be the Mortgage Credit Certificate and the Down Payment Assistance System.

Also you buy a house between January 1, 2009 and December 1, 2009 and should you qualify for one of these plans, you could also be eligible for the $8,000 tax credit just enacted into law.

First, who's a First Time Home Buyer? A first-time Home Buyer is someone who hasn't owned a home in the prior three years. That is exactly the same qualifying definition for the $8,000 tax credit.

What's a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a federal tax credit to help home buyers with moderate and low incomes. All home owners can claim an itemized deduction. The MCC takes this a step further.

Should you are eligible for the MCC, you can claim 20% of the interest you pay as a credit on your federal income taxes on your own mortgage. It is possible to save as much as $2,000 on your taxes.

You will manage to join this with the $8,000 tax credit, if you do qualify for the MCC, for 2009. This could reduce the tax liability of a buyer's .

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and any person anticipated to reside in the residence who's 18 years of age or older.”

House price limits that apply in Durham, Orange and Chatham Counties and the income are given below.

MCC Income Limitations 1 Man $61,500 2 Men $61,500 3 Individuals $70,500 4 Men $70,500

MCC Sales Cost Limits New Home $220,000 Existing Residence $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that need help with their deposit and closing costs may be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The purchaser only needs to pay and the load would pay up to .

This plan has more stringent income limitations than the MCC plan outlined above. Like the MCC program, it can be utilized along with all the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The deposit help, however, can't be applied in conjunction together with the MCC. This really is an either or scenario.

The income and house price limits Durham and Chatham Counties are given below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Men $45,650 3 Individuals $51,350 4 Individuals $57,050

Down Payment Assistance Sales Price Limits New House $210,000 Existing Home $210,000